- U.S. home prices are on the rise, and Zillow predicts home values will increase 6.5 percent within the next year.
- However, a new GOBankingRates study found home prices are falling in multiple cities throughout the country.
- Many of the cities with cheaper homes are located in the South and Midwest, such as Arlington, Va., (No. 1) and Toledo, Ohio (No. 9).
Home prices across America are on the rise as a whole, but in some major U.S. cities, prices are actually plummeting, a new GOBankingRates study found.
This is good news for aspiring homeowners who previously have been unable to afford homes — as long as they are willing to relocate to or already live in one of the 15 cities across the U.S. that made our list. GOBankingRates determined the major cities where house prices are falling by looking at prices in the 200 most populous U.S. cities and identifying which ones had the biggest home value drops over the past one, two and three years.
Click to find out the best cities for aspiring millennial homeowners.
Home Prices Are Falling in These Cities
Most of the cities where home prices are dropping are clustered in the South. Some cities in the Midwest also saw large price drops. The only geographical outliers are Santa Rosa, Calif., and Honolulu.
Click on the map below to learn more about the cities with falling home prices:
Arlington, Va., saw the biggest drop in home prices, with a $34,000 decrease in the median home value from March 2017 to March 2018. However, it’s worth noting that Arlington still has the most expensive homes of any of the cities on the list, with the median home value for March 2018 at $645,000.
Santa Rosa and Greenville, S.C., round out the top three cities with the biggest price drops from March 2017 to March 2018, with average home prices dropping $29,000 and $17,000, respectively.
Upgrade Your Real Estate: You Might Actually Be Able to Afford a Mansion in These 20 States
Here’s the full list of major U.S. cities where home prices are plummeting:
|Rank||City||State||March 2017 Home Values||March 2018 Home Values||Yearly Difference|
Click through to read more about U.S. cities where you can own a home for less than $1,000 a month.
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- How to Decide Whether to Buy or Build a House
Methodology: GOBankingRates calculated the difference in dollar amount in median list price from March 2015 to March 2018 using Zillow’s data for the 200 most populous cities. The list was sorted by the cities with the highest decrease in median list price from March 2017 to March 2018, but also examined the difference in price for these cities over a two-year and three-year period.